{
  "title": "Considerations for a Stronger Fiscal Framework in Ireland",
  "publication": "Selected Issues Papers, July 7, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/07/07/considerations-for-a-stronger-fiscal-framework-in-ireland-568306",
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  "summary": "Ireland’s reliance on corporate income tax (CIT) receipts from multinational enterprises (MNEs), concentrated in a small number of companies, presents significant risks to the budget.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Ireland’s reliance on corporate income tax (CIT) receipts from multinational enterprises (MNEs), concentrated in a small number of companies, presents significant risks to the budget.\n- The paper proposes strengthening the national fiscal framework by:\n  - establishing a prudent medium-term debt anchor; and\n  - introducing an expenditure rule to guide the annual budget process.\n- The operational approach aims to stabilize debt at the anchor level while accounting for the economy’s cyclical positions."
    },
    {
      "heading": "Analytical approach and key concepts",
      "content": "- Calibrate CIT shocks and simulate possible debt trajectories to establish a prudent debt anchor.\n- Design an operational rule based on multi-year expenditure ceilings that:\n  - stabilizes debt at the anchor level; and\n  - accounts for cyclical positions of the economy.\n- Key terminology used: CIT shock, Corporate income tax, Debt Anchor, debt fan, debt trajectory, Expenditure Rule, Fiscal governance, Fiscal Rule, Fiscal rules, Fiscal stance."
    },
    {
      "heading": "Policy recommendations and operational proposals",
      "content": "- Establish a prudent medium-term debt anchor for Ireland informed by calibrated CIT shocks and debt trajectory simulations.\n- Implement multi-year expenditure ceilings as an operational expenditure rule to:\n  - guide the annual budget process; and\n  - stabilize debt at the chosen anchor while incorporating cyclical adjustments."
    },
    {
      "heading": "Publication and document metadata",
      "content": "- Title: Considerations for a Stronger Fiscal Framework in Ireland\n- Authors: Waikei Raphael Lam, Rossen Rozenov, Yang Yang, Yinjie Yu\n- Date: July 7, 2025\n- Pages: 36\n- Volume: 2025\n- Issue: 088\n- Series: Selected Issues Paper No. 2025/088\n- DOI: https://doi.org/10.5089/9798229015417.018\n- Stock No: SIPEA2025088\n- ISBN: 9798229015417\n- ISSN: 2958-7875\n\nSource: Considerations for a Stronger Fiscal Framework in Ireland (Selected Issues Papers), July 7, 2025.\n\n---\n\n Content in this bundle\n\n- Sipea2025088\n  - Sipea2025088 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2025088 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/07/07/considerations-for-a-stronger-fiscal-framework-in-ireland-568306"
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    "Authors: Waikei R Lam, Rossen Rozenov, Yang Yang, Yinjie Yu",
    "Published: July 7, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229015417.018",
    "Ireland’s reliance on corporate income tax (CIT) receipts from multinational enterprises (MNEs), concentrated in a small number of companies, presents significant risks to the budget.",
    "The paper proposes strengthening the national fiscal framework by:",
    "The operational approach aims to stabilize debt at the anchor level while accounting for the economy’s cyclical positions.",
    "Calibrate CIT shocks and simulate possible debt trajectories to establish a prudent debt anchor.",
    "Design an operational rule based on multi-year expenditure ceilings that:",
    "Key terminology used: CIT shock, Corporate income tax, Debt Anchor, debt fan, debt trajectory, Expenditure Rule, Fiscal governance, Fiscal Rule, Fiscal rules, Fiscal stance.",
    "Establish a prudent medium-term debt anchor for Ireland informed by calibrated CIT shocks and debt trajectory simulations.",
    "Implement multi-year expenditure ceilings as an operational expenditure rule to:",
    "Title: Considerations for a Stronger Fiscal Framework in Ireland",
    "Authors: Waikei Raphael Lam, Rossen Rozenov, Yang Yang, Yinjie Yu",
    "Date: July 7, 2025",
    "Pages: 36",
    "Volume: 2025",
    "Issue: 088",
    "Series: Selected Issues Paper No. 2025/088",
    "DOI: https://doi.org/10.5089/9798229015417.018",
    "Stock No: SIPEA2025088",
    "ISBN: 9798229015417",
    "ISSN: 2958-7875",
    "**Sipea2025088**"
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